Treasury rules out pay increase for teachers, doctors

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Finance minister Njeru Githae said spending on wages, which takes up a large portion of the Budget, was already so high that it was unsustainable.

What you need to know:

  • Finance minister Njeru Githae said spending on wages, which takes up a large portion of the Budget, was already so high that it was unsustainable.
  • The Kenya National Union of Teachers (KNUT) has issued a notice for a strike set to start on September 3, the same day that the third term begins for most public schools.
  • Teachers are pressing for the implementation of an agreement on higher allowances that had been entered with the government way back in 1996. But Mr Githae said the agreement had been overtaken by the Constitution.

The Treasury has ruled out a pay increment for teachers and doctors, saying there would be no reviews until all public sector wages are harmonised next year.

Finance minister Njeru Githae said spending on wages, which takes up a large portion of the Budget, was already so high that it was unsustainable.

“It is not in the interest of the country’s economic development for the recurrent expenditure to balloon as it has already done,” said Mr Githae.

My wish is to have a bigger share of the development budget going forward. Wages are the main item on recurrent expenditure.”

The Kenya National Union of Teachers (KNUT) has issued a notice for a strike set to start on September 3, the same day that the third term begins for most public schools.

Teachers are pressing for the implementation of an agreement on higher allowances that had been entered with the government way back in 1996. But Mr Githae said the agreement had been overtaken by the Constitution.

“The new Constitutions provisions have superseded any other law or agreement. The Constitution has now specified that the Salaries and Remuneration Commission is the one to set such salaries. It is not for the Treasury or the Ministry of Education to deal with the teachers’ salaries and this applies to other civil servants,” said Mr Githae. Doctors have also complained that an agreement on pay increase last year had not been honoured and have threatened industrial action.

Mr Githae said he wanted the proportion of the development budget increased from about 30 per cent to 35 per cent or more.

Mr Githae said it would no longer be possible for ministries, departments and their agencies to get allocation on the basis of lobbying.

“The ministries will be reduced to between 14 and 22 after the General Election. The president who will be elected will reorganise the government in line with the Constitution, so the way we are used to budgeting must also change,” said Mr Githae.

The minister was speaking after launching the budgeting process for the 2013-2016 Medium Term Expenditure Framework whose working groups will for the first time budget for the counties.

Treasury Permanent Secretary Joseph Kinyua said Budget priorities in the counties had been identified and interventions for consideration in the medium term presented.

Mr Kinyua said various ministries and departments had presented his office with requests for extra funding to the tune of Sh500 billion at the finalisation stage of the Budget.

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